a$.$ What is the beta on each portfolio?

b$.$ Which portfolio is riskier?

c$.$ If the risk$-$free rate of interest were $5$ percent and the market risk premium were $5\mathrm{.}5$ percent, what rate of return would you expect to earn from each of the portfolios?

a$.$ The beta on the first portfolio is

$($Round to three decimal places.$)$

The beta on the second portfolio is

$($Round to three decimal places.$)$

b$.$ Which portfolio is riskier? $($Select the best choice below.$)$

A$.$ The second portfolio because the beta is larger.

B$.$ The second portfolio because the beta is smaller.

C$.$ The first portfolio because the beta is smaller.

D$.$ The first portfolio because the beta is larger.

c$.$ If the risk$-$free rate of interest were $5\%$ and the market risk premium were $5\mathrm{.}5\%,$ then the rate of return on the first portfolio is expected to be

$\%.($Round to two decimal places.$)$

If the risk$-$free rate of interest were $5\%$ and the market risk premium were $5\mathrm{.}5\%,$ then the rate of return on the second portfolio is expected to be

$\%.($Round to two decimal places.$)$

Data table